UNIVERSITY OF GLASGOW 
ACCFIN4040: Derivative Securities 
Comprehensive Study and Exam Preparation Guide 2025 
 
Part 01: About This Guide 
Part 02: Sample Final Examination Paper 
Part 03: Detailed Solutions and Explanations 
Part 04: Proven Exam Strategies and Tips 
 
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University of Glasgow - ACCFIN4040: Derivative Securities (Solutions)

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ACADEMIC YEAR 2024 - 2025

University	University of Glasgow
School	Adam Smith Business School
Course Code	ACCFIN4040
Course Name	Derivative Securities
Notes Title	Comprehensive Study and Exam Prep. Guide
Page Length	30

This guide provides students with an excellent opportunity to familiarise themselves with the content and format of the updated final examination for the ACCFIN4040: Derivative Securities at the University of Glasgow. It also offers a chance to practise useful exam techniques. The guide focuses on core exam questions and includes clear, simple diagrams that facilitate understanding and recall during the real exam. Thoroughly updated, this self-study set covers all topics included in the latest edition of the course, ensuring students are fully prepared to tackle the final examination with confidence. The guide is structured to support both revision and active learning.

This course offers a comprehensive introduction to the main derivative financial instruments - futures, swaps, and options - focusing on their valuation, trading mechanisms, and practical applications in portfolio and risk management. It explains the fundamental pricing principles of these instruments and explores how they are used in real-world financial markets. The course also introduces the workings of the foreign exchange market and the instruments traded within it, incorporating relevant institutional aspects where appropriate.

By the end of this course students will be able to:

Analyse how futures and forwards can be used by hedgers and speculators.
Evaluate the price and the value of forward (futures) contracts.
Perform valuation of an interest rate swap and a currency swap.
Discuss how option payoffs are determined.
Discuss the use of a variety of option trading strategies and apply the put-call parity theorem.
Evaluate the fair value of an option contract using the binomial option pricing model and the Black-Scholes-Merton option pricing model.

COURSE CODE	COURSE NAME
ACCFIN1001	Introduction to Business Reporting and Financial Accounting
ACCFIN1003	Finance 1
ACCFIN1004	Financial Accounting 1
ACCFIN1006	Introduction to Management Accounting and Control
ACCFIN1016	Introduction to Finance, Investments and Institutions
ACCFIN2002	Finance 2
ACCFIN2003	Financial Accounting 2
ACCFIN2018	Statistical Analysis and Methods
ACCFIN4010	Capital Markets and Portfolio Management
ACCFIN4040	Derivative Securities
ACCFIN4070	Corporate Finance
ACCFIN4079	Econometric Methods for Accounting and Finance
ACCFIN4081	Financial Management
ECON1001	Economics 1A
ECON1002	Economics 1B
ECON2001	Economics 2A
ECON2002	Economics 2B
ECON4003	Econometrics 1: Introduction to Econometrics
ECON4004	Econometrics 2: Multiple Regression and Applications
MGT1025	Current Topics in Marketing

University of Glasgow - ACCFIN4040: Derivative Securities (Solutions)

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